A quick scan of the answer options tell us that the issue lies with the introductory phrase that begins with ‘As sales of cars …’
Now, what is the intended meaning here?The meaning here is that there was a certain decline in sales percentage because of which many analysts concluded that there is no chance of recovery.
Now let's look at the options one-by-one:
(A) As sales of cars and light trucks made in North America were declining 13.6 percent in late February, many analysts conclude
This option has an evident tense error. It says sales were declining, analysts conclude… The tenses don’t match in the two halves of the sentences and therefore can be eliminated. (B) Since sales of cars and light trucks made in North America declined 13.6 percent in late February, and many analysts conclude
If you look at the verbs here you will again notice the discrepancy with the tense. This is similar to the issue found in Option A. It says, Sales declined, and many analysts conclude. Eliminate. (C) With sales of cars and light trucks made in North America declining 13.6 percent in late February, with many analysts concluding
This option uses 'with' phrases twice – with sales… and with analysts concluding… The main clause isn’t there. Eliminate.(D) Because sales of cars and light trucks made in North America declined 13.6 percent in late February, many analysts concluded
This option has the same tense used throughout the sentence: Sales declined, analysts concluded. This is the best option.(E) Because of sales of cars and light trucks made in North America declining 13.6 percent in late February, therefore, many analysts concluded
A lot of things are incorrect here, but we can just look at the tense issue: Sales declining, many analysts concluded. Definitely changes the intended meaning. Eliminate.
Option D is the best option. Hope this helps!